armenian banking sector overview
DESCRIPTION
Armenian Banking Sector OverviewTRANSCRIPT
Armenian
Banking Sector
Overview
2014 Results
(non audited)
February 2015
Basis of Preparation 2
At a Glance 3
Sector Highlights 4
Bank Profiles 5
Appendix 1: Shareholding Structure & General Information 26
Appendix 2: Sector Insights 28
Appendix 3: Key Financial Indicators 32
Appendix 4: Bank Contact Details 36
KPMG Experience in the Armenian Banking Sector 38
Abbreviations 39
Glossary of Terms 40
Contents
Basis of Preparation
This report summarizes and analyzes the financial results of the 21
commercial banks of Armenia for the 4th
quarter of 2014, as well as
provides some insights into the recent developments in the sector.
The financial information has been obtained from the published interim
reports for the 4th
quarther of 2014. The banks are listed in the
alphabetical order throughout the publication. We have used simple
headline numbers in our analysis unless stated otherwise; each bank has
its own way of reporting performance and this has proved to be the most
consistent method of presenting their results.
All the key ratios are calculated based on the obtained data unless stated
otherwise. There were some changes made to the methodology of
calculation of certain ratios, which are stated in the text. Hence, one shall
consider this while comparing the ratios reported herein with those of our
previous publications.
The general information, such as the number of branches, employee
headcount, etc, are mainly taken from the Notes to the Financial
Statements prepared by the banks. The official websites of the banks
serve as the only alternative source, however they are not always
properly updated. Due to this, the figures presented may not necessarily
be as of 31 December 2014. There may be figures more up to date or of
an earlier date depending on the latest available information published by
the banks.
The main source of news is the official websites of the banks and the
Central Bank of Armenia, as well as the official press releases published
by various news agencies.
© 2015 KPMG Armenia cjsc. All rights reserved. 3
At a Glance
Key Financial Indicators of the Armenian Banking Sector (in million AMD)
Top Ten Banks of the Armenian Banking Sector as of 31 December 2014 (in million AMD)
* The indicators of the financial position are as of the last day of the corresponding period.
** Loan portfolio includes loans and the receivables from letters of credits, finance lease and factoring.
*** Deposits include current accounts.
**** Net operating income is before provisions and administrative expenses.
The banking system remains the biggest part of the Armenian financial market. As of 31 December 2014, there were 21
commercial banks operating in the Republic of Armenia. They had 511 branches in Armenia and in Nagorno Karabakh,
from which 224 were located in Yerevan. The total number of employees in the Armenian commercial banks was about
11,915.
Key Financial Indicators* 2014 2013 Change (2014/2013)
Assets 3,410,584 2,938,589 16.1%
Interest Earning Assets 2,603,941 2,182,168 19.3%
Gross Advances to Customers 2,350,111 1,946,297 20.7%
Loan portfolio** 2,162,966 1,784,663 21.2%
Liabilities 2,921,841 2,469,388 18.3%
Deposits*** 1,701,080 1,623,247 4.8%
Equity 488,743 469,201 4.2%
Charter Capital 272,640 245,562 11.0%
Total Income 353,459 320,401 10.3%
Interest Income 288,677 264,355 9.2%
Non-Interest Income 28,766 24,485 17.5%
Net Interest Income 140,242 131,503 6.6%
Net Non-Interest Income 21,025 17,810 18.1%
Net Operating Income**** 197,283 180,874 9.1%
Operating Expenses (107,315) (100,901) 6.4%
Net Provision Expenses (53,216) (20,121) 164.5%
Net Profit before Taxes 36,752 59,852 -38.6%
Net Profit after Taxes 27,155 46,292 -41.3%
Other Comprehensive Income (11,707) 15,410 -176.0%
Total Comprehensive Income 15,448 61,701 -75.0%
-10,000
0
10,000
20,000
30,000
40,000
50,000
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
Ameria VTB ASHIB HSBC ACBA ABB Unibank Ineco Converse Ararat
Assets Loans Deposits Equity Total Income (right axis) Net Profit (right axis)
© 2015 KPMG Armenia cjsc. All rights reserved. 4
Liquidity
25.1%
Loan
portfolio/
deposits
1.27
Sector Highlights
Compared with the 2013, the banking system assets grew by 16.1% and
reached AMD 3,410.6 billion as of 31 December 2014.
For the year ended 31 December 2014 the return on assets (ROA)* for the
Armenian banking system was 0.9%, which decreased by 0.9 percentage
points compared with the same date of 2013.
During the fourth quarter of 2014 there were some changes in the list of
Top 10 Banks in Armenia by assets with "AraratBank" OJSC entering the
list and "AreximBank-GazPromBank Group" CJSC leaving the Top 10 Banks
list. Also "Ardshinbank" CJSC, "HSBC Bank Armenia" CJSC and "InecoBank"
CJSC moved up by 1 position each and "Converse Bank" CJSC and "ACBA-
Credit Agricole Bank" CJSC moved down by 1 and 2 positions respectively
in the ranking.
As of 31December 2014 the total amount of outstanding loans disbursed
grew by 21.2% compared with the same date of 2013 and reached AMD
2,163.0 billion.
For the year ended 31 December 2014 the ratio of loan portfolio to total
assets for the Armenian banking system was 63.4%. According to the
CBA, as of 31 December 2014 the Armenian banking system liquidity ratio
was 25.1%.
For the reported period the total net provision expenses of the Armenian
banking sector increased by 164.5% compared with the same period of the
2013, and amounted to AMD 53.2 billion.
The outstanding balance of deposits as of 31 December 2014 increased by
4.8% compared with the same date of 2013, reaching AMD 1,701.1
billion.
As of 31 December 2014 the loan portfolio/ deposit ratio for the Armenian
banking system was 1.27.
As of 31 December 2014 the total equity of banks reached AMD 488.7
billion, which exceeded the same indicator as of 31 December 2013 by
4.2%.
For the year ended 31 December 2014 the return on equity (ROE)* for the
Armenian banking system was 5.7%. The ratio of equity to assets as of the
reported date was 14.3%. According to the CBA, the capital adequacy ratio
of Armenian banking system was 14.5%.
During the year ended 31 December 2014, the banking system had total
income of AMD 353.5 billion, which exceeded the total income for the
2013 by 10.3%. For the period ended 31 December 2014 the net interest
margin* for the Armenian banking system was 5.9%. The cost to income
ratio for the reported period was 54.4%.
The net profit before taxes of the banks for the year ended 31 December
2014 was AMD 36.8 billion.
The net profit after taxes of the banking system for the year ended 31
December 2014 was AMD 27.2 billion, which is lower by 41.3%,
compared with the same date of 2013.
For the year ended 31 December 2014 the profit margin for the Armenian
banking system was 7.7%.
* Please refer to the Glossary of Terms for the methodology of calculation
of this ratio.
16.1%
Assets
21.2%
Loans
4.8%
Deposits
4.2%
Equity
Total
income
10.3%
41.3%
Profit
ROA
0.9%
ROE
5.7%
Capital
adequacy
14.5%
NIM
5.9%
Cost/
income
54.4%
PM
7.7%
© 2015 KPMG Armenia cjsc. All rights reserved. 5
Bank Profiles
ACBA – Credit Agricole Bank
Key Financial Indicators*
* The indicators of the financial position are as of the last day of the corresponding period.
Key Indicators of the Financial Position
Key Ratios**
Key Indicators of the Financial Results
Rankings
5th
rank by the assets
1st
rank by the charter capital
2nd
rank by the total income
Among the top ten banks by almost all financial
indicators.
** The capital adequacy and liquidity ratios are taken from the key prudential ratios reported by the bank as of the end of the reporting period.
October November December
New branch was opened in Erebuni, Yerevan
-
50,000
100,000
150,000
200,000
250,000
300,000
Assets Loan
Portfolio
Deposits Equity
As of 31.12.14 As of 31.12.13
2014 2013 2014/2013
Assets 286,410 267,683 8.4% 5 7.0%
Interest Earning Assets 213,669 203,776 8.2% 5 4.9%
Loan Portfolio 179,530 169,282 8.3% 6 6.1%
Liabilities 237,039 213,533 8.1% 6 11.0%
Deposits 123,666 107,880 7.3% 6 14.6%
Equity 49,371 54,150 10.1% 1 -8.8%
Charter Capital 30,000 30,000 11.0% 1 -
Total Income 36,985 33,904 10.5% 2 9.1%
Interest Income 28,759 28,775 10.0% 2 -0.1%
Net Provision Expenses (14,739) (1,472) 27.7% 1 901.4%
Net Profit after Taxes (4,625) 4,999 - 20 -192.5%
Total Comprehensive Income (4,779) 5,288 - 20 -190.4%
Change,Amount, mln AMD
Share in total,
%
Rank
(20,000)
(10,000)
-
10,000
20,000
30,000
40,000
Total
Income
Interest
Income
NPE NPT OCI
2014 2013
-1.7%
-8.9%
7.2%
-12.5%
17.2%
62.7%
53.2%
25.2%
13.6%
-20% 0% 20% 40% 60% 80%
ROA
ROE
NIM
PM
Equity/Assets
Loan Portfolio/Assets
Cost to Income Ratio
Liquidity
Capital Adequacy
© 2015 KPMG Armenia cjsc. All rights reserved. 6
Bank Profiles (continued)
Ameriabank
Key Financial Indicators*
Rankings
1st
rank by the assets
1st
rank by the loan portfolio
1st
rank by the deposits
2nd
rank by the charter capital
4th
rank by the total income
1st
rank by the net profit after tax
1st
rank by the total comprehensive income
Among the top ten banks by almost all financial
indicators.
Key Indicators of the Financial Position Key Indicators of the Financial Results
* The indicators of the financial position are as of the last day of the corresponding period.
Key Ratios**
** The capital adequacy and liquidity ratios are taken from the key prudential ratios reported by the bank as of the end of the reporting period.
October November December
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
Assets Loan
Portfolio
Deposits Equity
As of 31.12.14 As of 31.12.13
2014 2013 2014/2013
Assets 399,744 315,048 11.7% 1 26.9%
Interest Earning Assets 325,891 211,215 12.5% 1 54.3%
Loan Portfolio 300,359 185,100 13.9% 1 62.3%
Liabilities 357,389 276,342 12.2% 1 29.3%
Deposits 208,697 169,942 12.3% 1 22.8%
Equity 42,355 38,706 8.7% 5 9.4%
Charter Capital 25,448 25,448 9.3% 2 -
Total Income 33,572 27,736 9.5% 4 21.0%
Interest Income 27,712 22,769 9.6% 3 21.7%
Net Provision Expenses (1,731) (1,960) 3.3% 8 -11.6%
Net Profit after Taxes 7,149 6,057 26.3% 1 18.0%
Total Comprehensive Income 6,599 6,433 42.7% 1 2.6%
Amount, mln AMD
Share in total,
%
Rank
Change,
(5,000)
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
Total
Income
Interest
Income
NPE NPT OCI
2014 2013
2.0%
17.6%
5.4%
21.3%
10.6%
75.1%
46.4%
26.5%
13.1%
0% 20% 40% 60% 80%
ROA
ROE
NIM
PM
Equity/Assets
Loan Portfolio/Assets
Cost to Income Ratio
Liquidity
Capital Adequacy
© 2015 KPMG Armenia cjsc. All rights reserved. 7
Bank Profiles (continued)
Anelik Bank
Key Financial Indicators*
Key Indicators of the Financial Position Key Indicators of the Financial Results
* The indicators of the financial position are as of the last day of the corresponding period.
Key Ratios**
** The capital adequacy and liquidity ratios are taken from the key prudential ratios reported by the bank as of the end of the reporting period.
October November December
The bank was awarded ISO 9001: 2008 quality
management system international certification
-
20,000
40,000
60,000
80,000
100,000
Assets Loan
Portfolio
Deposits Equity
As of 31.12.14 As of 31.12.13
2014 2013 2014/2013
Assets 87,034 60,029 2.6% 14 45.0%
Interest Earning Assets 63,586 43,930 2.4% 15 44.7%
Loan Portfolio 58,615 38,597 2.7% 13 51.9%
Liabilities 72,629 46,959 2.5% 14 54.7%
Deposits 48,531 33,237 2.9% 13 46.0%
Equity 14,405 13,070 2.9% 14 10.2%
Charter Capital 11,816 10,816 4.3% 10 9.2%
Total Income 8,501 6,280 2.4% 16 35.4%
Interest Income 6,383 5,407 2.2% 17 18.0%
Net Provision Expenses 159 (648) - 20 -124.5%
Net Profit after Taxes 335 (1,444) 1.2% 15 -123.2%
Total Comprehensive Income 335 (1,444) 2.2% 12 -123.2%
Amount, mln AMD
Share in total,
%
Rank
Change,
(2,000)
-
2,000
4,000
6,000
8,000
10,000
Total
Income
Interest
Income
NPE NPT
2014 2013
0.5%
2.4%
3.7%
3.9%
16.6%
67.3%
90.6%
17.5%
12.9%
0.0% 50.0% 100.0%
ROA
ROE
NIM
PM
Equity/Assets
Loan Portfolio/Assets
Cost to Income Ratio
Liquidity
Capital Adequacy
© 2015 KPMG Armenia cjsc. All rights reserved. 8
Bank Profiles (continued)
Araratbank
Key Financial Indicators*
Key Indicators of the Financial Position Key Indicators of the Financial Results
* The indicators of the financial position are as of the last day of the corresponding period.
Key Ratios**
** The capital adequacy and liquidity ratios are taken from the key prudential ratios reported by the bank as of the end of the reporting period.** The capital adequacy and liquidity ratios are taken from the key prudential ratios reported by the bank as of the end of the reporting period.
October November December
New branch was opened in Yerevan State
University main building, Yerevan
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Assets Loan
Portfolio
Deposits Equity
As of 31.12.14 As of 31.12.13
Rankings
5th
rank by the total comprehensive income
2014 2013 2014/2013
Assets 138,830 125,236 4.1% 10 10.9%
Interest Earning Assets 92,368 78,497 3.5% 10 17.7%
Loan Portfolio 65,771 59,594 3.0% 11 10.4%
Liabilities 117,058 105,604 4.0% 10 10.8%
Deposits 64,768 68,542 3.8% 9 -5.5%
Equity 21,771 19,633 4.5% 10 10.9%
Charter Capital 6,388 6,388 2.3% 19 -
Total Income 13,722 13,351 3.9% 10 2.8%
Interest Income 11,083 10,892 3.8% 10 1.8%
Net Provision Expenses (709) (486) 1.3% 15 46.0%
Net Profit after Taxes 2,947 3,083 10.9% 6 -4.4%
Total Comprehensive Income 2,437 3,472 15.8% 5 -29.8%
Rank
Change,Amount, mln AMD
Share in total,
%
(2,000)
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Total
Income
Interest
Income
NPE NPT OCI
2014 2013
2.2%
14.2%
7.3%
21.5%
15.7%
47.4%
49.6%
41.3%
18.3%
0% 20% 40% 60%
ROA
ROE
NIM
PM
Equity/Assets
Loan Portfolio/Assets
Cost to Income Ratio
Liquidity
Capital Adequacy
© 2015 KPMG Armenia cjsc. All rights reserved. 9
Bank Profiles (continued)
Ardshinbank
Key Financial Indicators*
Rankings
3rd
rank by the assets
3rd
rank by the loan portfolio
2nd
rank by the deposits
3rd
rank by the total income
4th
rank by the profit after tax
Among the top ten banks by almost all financial
indicators.
Key Indicators of the Financial Position Key Indicators of the Financial Results
* The indicators of the financial position are as of the last day of the corresponding period.
Key Ratios**
** The capital adequacy and liquidity ratios are taken from the key prudential ratios reported by the bank as of the end of the reporting period.
October November December
The name of the bank was changed to
“Ardshinbank” CJSC
The bank and EDB signed a loan agreement of
USD 10 million to finance SME in the RA
The bank and BSTDB signed a loan agreement
of USD 10 million to finance SME in the RA
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
Assets Loan
Portfolio
Deposits Equity
As of 31.12.14 As of 31.12.13
2014 2013 2014/2013
Assets 369,090 269,328 10.8% 3 37.0%
Interest Earning Assets 265,022 205,299 10.2% 3 29.1%
Loan Portfolio 220,148 172,287 10.2% 3 27.8%
Liabilities 321,695 225,211 11.0% 3 42.8%
Deposits 182,811 159,156 10.7% 2 14.9%
Equity 47,395 44,117 9.7% 2 7.4%
Charter Capital 17,925 13,802 6.6% 6 29.9%
Total Income 35,011 33,232 9.9% 3 5.4%
Interest Income 27,499 26,973 9.5% 4 1.9%
Net Provision Expenses (4,593) (3,655) 8.6% 4 25.7%
Net Profit after Taxes 4,171 6,420 15.4% 4 -35.0%
Total Comprehensive Income 1,553 8,284 10.1% 8 -81.2%
Amount, mln AMD
Share in total,
%
Rank
Change,
(10,000)
(5,000)
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
Total
Income
Interest
Income
NPE NPT OCI
2014 2013
1.3%
9.1%
4.8%
11.9%
12.8%
59.6%
46.6%
32.9%
13.5%
0% 20% 40% 60% 80%
ROA
ROE
NIM
PM
Equity/Assets
Loan Portfolio/Assets
Cost to Income Ratio
Liquidity
Capital Adequacy
© 2015 KPMG Armenia cjsc. All rights reserved. 10
Bank Profiles (continued)
Areximbank – Gazprombank Group
Key Financial Indicators*
Key Indicators of the Financial Position Key Indicators of the Financial Results
* The indicators of the financial position are as of the last day of the corresponding period.
Key Ratios**
** The capital adequacy and liquidity ratios are taken from the key prudential ratios reported by the bank as of the end of the reporting period.
-
50,000
100,000
150,000
200,000
250,000
Assets Loan
Portfolio
Deposits Equity
As of 31.12.14 As of 31.12.13
2014 2013 2014/2013
Assets 110,728 233,438 3.2% 11 -52.6%
Interest Earning Assets 72,275 99,969 2.8% 11 -27.7%
Loan Portfolio 69,078 92,768 3.2% 10 -25.5%
Liabilities 95,068 212,108 3.3% 11 -55.2%
Deposits 41,811 160,800 2.5% 15 -74.0%
Equity 15,661 21,329 3.2% 13 -26.6%
Charter Capital 16,452 16,452 6.0% 7 -
Total Income 13,396 13,746 3.8% 11 -2.5%
Interest Income 9,881 11,352 3.4% 11 -13.0%
Net Provision Expenses (8,817) (1,122) 16.6% 3 685.6%
Net Profit after Taxes (5,669) 109 - 21 -5314.9%
Total Comprehensive Income (5,669) 392 - 21 -1546.7%
Amount, mln AMD
Share in total,
%
Rank
Change,
(10,000)
(5,000)
-
5,000
10,000
15,000
Total
Income
Interest
Income
NPE NPT OCI
2014 2013
-3.3%
-30.7%
4.5%
-42.3%
14.1%
62.4%
70.1%
24.1%
13.1%
-50% 0% 50% 100%
ROA
ROE
NIM
PM
Equity/Assets
Loan Portfolio/Assets
Cost to Income Ratio
Liquidity
Capital Adequacy
October November December
© 2015 KPMG Armenia cjsc. All rights reserved. 11
Bank Profiles (continued)
Armbusinessbank
Key Financial Indicators*
Key Indicators of the Financial Position Key Indicators of the Financial Results
Rankings
3rd
rank by the loan portfolio
5th
rank by the deposits
3rd
rank by the charter capital
5th
rank by the profit after tax
5th
rank by the net profit after taxes
4th
rank by the total comprehensive income
Among the top ten banks by almost all financial
indicators.
* The indicators of the financial position are as of the last day of the corresponding period.
Key Ratios**
** The capital adequacy and liquidity ratios are taken from the key prudential ratios reported by the bank as of the end of the reporting period.
October November December
New branches were opened in Komitas,
Yerevan and Shirak
A new branch was opened in Artashat
The bank and Czech Export Bank signed a Framework
Agreement, which provides relatively low cost of
transactions, particularly low annual interest rate and
long-term financing (up to 10 years) for financing imports
of Czech goods to Armenia
The bank and the Development Bank of the Republic of
Belarus signed a framework agreement, pursuant to
which Armenian importers can make the payment for
Belarusian goods with deferment period for up to 5
years, while Belarusian exporters can receive payment
for commodities exported to Armenia in due time
A new branch was opened in Gegharkunik
-
50,000
100,000
150,000
200,000
250,000
300,000
Assets Loan
Portfolio
Deposits Equity
As of 31.12.14 As of 31.12.13
2014 2013 2014/2013
Assets 268,935 219,459 7.9% 6 22.5%
Interest Earning Assets 211,974 166,714 8.1% 6 27.1%
Loan Portfolio 184,415 137,220 8.5% 5 34.4%
Liabilities 241,291 194,538 8.3% 5 24.0%
Deposits 145,569 116,508 8.6% 5 24.9%
Equity 27,644 24,921 5.7% 6 10.9%
Charter Capital 22,908 17,500 8.4% 3 30.9%
Total Income 23,983 21,694 6.8% 6 10.5%
Interest Income 20,166 18,767 7.0% 5 7.5%
Net Provision Expenses 1,504 (886) - 21 -269.8%
Net Profit after Taxes 3,527 1,891 13.0% 5 86.6%
Total Comprehensive Income 2,723 3,288 17.6% 4 -17.2%
Amount, mln AMD
Share in total,
%
Rank
Change,
(5,000)
-
5,000
10,000
15,000
20,000
25,000
30,000
Total
Income
Interest
Income
NPE NPT OCI
2014 2013
1.4%
13.4%
2.8%
14.7%
10.3%
68.6%
65.8%
16.1%
13.2%
0% 20% 40% 60% 80%
ROA
ROE
NIM
PM
Equity/Assets
Loan Portfolio/Assets
Cost to Income Ratio
Liquidity
Capital Adequacy
© 2015 KPMG Armenia cjsc. All rights reserved. 12
Bank Profiles (continued)
Armeconombank
Key Financial Indicators*
Key Indicators of the Financial Position Key Indicators of the Financial Results
* The indicators of the financial position are as of the last day of the corresponding period.
Key Ratios**
** The capital adequacy and liquidity ratios are taken from the key prudential ratios reported by the bank as of the end of the reporting period.
October November December
-
20,000
40,000
60,000
80,000
100,000
Assets Loan
Portfolio
Deposits Equity
As of 31.12.14 As of 31.12.13
2014 2013 2014/2013
Assets 91,986 74,163 2.7% 12 24.0%
Interest Earning Assets 66,711 55,137 2.6% 14 21.0%
Loan Portfolio 52,095 40,694 2.4% 15 28.0%
Liabilities 80,845 63,100 2.8% 12 28.1%
Deposits 57,529 44,435 3.4% 10 29.5%
Equity 11,141 11,064 2.3% 17 0.7%
Charter Capital 2,333 2,333 0.9% 21 -
Total Income 11,229 10,016 3.2% 12 12.1%
Interest Income 8,332 7,237 2.9% 13 15.1%
Net Provision Expenses 42 (140) - 19 -129.8%
Net Profit after Taxes 886 717 3.3% 11 23.6%
Total Comprehensive Income 77 1,609 0.5% 14 -95.2%
Amount, mln AMD
Share in total,
%
Rank
Change,
(2,000)
-
2,000
4,000
6,000
8,000
10,000
12,000
Total
Income
Interest
Income
NPE NPT OCI
2014 2013
1.07%
8.0%
7.0%
7.9%
12.1%
56.6%
83.3%
29.3%
12.7%
0% 20% 40% 60% 80% 100%
ROA
ROE
NIM
PM
Equity/Assets
Loan Portfolio/Assets
Cost to Income Ratio
Liquidity
Capital Adequacy
© 2015 KPMG Armenia cjsc. All rights reserved. 13
Bank Profiles (continued)
Armenian Development Bank
Key Financial Indicators*
Key Indicators of the Financial Position Key Indicators of the Financial Results
* The indicators of the financial position are as of the last day of the corresponding period.
Key Ratios**
** The capital adequacy and liquidity ratios are taken from the key prudential ratios reported by the bank as of the end of the reporting period.
October November December
New branch was opened in Malatia-Sebastia,
Yerevan
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
Assets Loan
Portfolio
Deposits Equity
As of 31.12.14 As of 31.12.13
2014 2013 2014/2013
Assets 75,819 68,508 2.2% 17 10.7%
Interest Earning Assets 58,016 50,761 2.2% 16 14.3%
Loan Portfolio 47,935 40,188 2.2% 16 19.3%
Liabilities 65,890 59,345 2.3% 16 11.0%
Deposits 51,773 53,950 3.0% 12 -4.0%
Equity 9,929 9,164 2.0% 18 8.4%
Charter Capital 4,526 4,526 1.7% 20 -
Total Income 8,637 7,691 2.4% 15 12.3%
Interest Income 7,791 6,460 2.7% 14 20.6%
Net Provision Expenses (993) (179) 1.9% 11 454.2%
Net Profit after Taxes 816 845 3.0% 12 -3.4%
Total Comprehensive Income 812 844 5.3% 10 -3.8%
Amount, mln AMD
Share in total,
%
Rank
Change,
(2,000)
-
2,000
4,000
6,000
8,000
10,000
Total
Income
Interest
Income
NPE NPT OCI
2014 2013
1.1%
8.6%
5.7%
9.5%
13.1%
63.2%
50.4%
19.9%
12.4%
0% 20% 40% 60% 80%
ROA
ROE
NIM
PM
Equity/Assets
Loan Portfolio/Assets
Cost to Income Ratio
Liquidity
Capital Adequacy
© 2015 KPMG Armenia cjsc. All rights reserved. 14
Bank Profiles (continued)
ArmSwissBank
Key Financial Indicators*
Key Indicators of the Financial Position Key Indicators of the Financial Results
* The indicators of the financial position are as of the last day of the corresponding period.
Key Ratios**
** The capital adequacy and liquidity ratios are taken from the key prudential ratios reported by the bank as of the end of the reporting period.
October November December
The bank and the EBRD signed a loan
agreement of USD 5 million to finance the
SME in the RA
2014 2013 2014/2013
Assets 84,493 69,811 2.5% 15 21.0%
Interest Earning Assets 70,255 61,190 2.7% 13 14.8%
Loan Portfolio 37,385 27,802 1.7% 17 34.5%
Liabilities 66,607 48,649 2.3% 15 36.9%
Deposits 34,642 24,155 2.0% 16 43.4%
Equity 17,886 21,162 3.7% 12 -15.5%
Charter Capital 8,753 8,753 3.2% 14 -
Total Income 9,040 7,335 2.6% 14 23.2%
Interest Income 7,663 6,195 2.7% 15 23.7%
Net Provision Expenses (1,230) (958) 2.3% 10 28.3%
Net Profit after Taxes 2,307 1,738 8.5% 8 32.8%
Total Comprehensive Income (3,276) 5,766 - 19 -156.8%
Amount, mln AMD
Share in total,
%
Rank
Change,
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
Assets Loan
Portfolio
Deposits Equity
As of 31.12.14 As of 31.12.13
(8,000)
(6,000)
(4,000)
(2,000)
-
2,000
4,000
6,000
8,000
10,000
Total
Income
Interest
Income
NPE NPT OCI
2014 2013
3.0%
11.8%
5.9%
25.5%
21.2%
44.2%
21.6%
35.9%
21.1%
0% 10% 20% 30% 40% 50%
ROA
ROE
NIM
PM
Equity/Assets
Loan Portfolio/Assets
Cost to Income Ratio
Liquidity
Capital Adequacy
© 2015 KPMG Armenia cjsc. All rights reserved. 15
Bank Profiles (continued)
Artsakh Bank
Key Financial Indicators*
Key Indicators of the Financial Position Key Indicators of the Financial Results
* The indicators of the financial position are as of the last day of the corresponding period.
Key Ratios**
** The capital adequacy and liquidity ratios are taken from the key prudential ratios reported by the bank as of the end of the reporting period.
October November December
-
20,000
40,000
60,000
80,000
100,000
Assets Loan
Portfolio
Deposits Equity
As of 31.12.14 As of 31.12.13
2014 2013 2014/2013
Assets 88,758 89,977 2.6% 13 -1.4%
Interest Earning Assets 71,240 75,220 2.7% 12 -5.3%
Loan Portfolio 63,683 62,107 2.9% 12 2.5%
Liabilities 77,524 76,323 2.7% 13 1.6%
Deposits 55,915 51,112 3.3% 11 9.4%
Equity 11,233 13,653 2.3% 15 -17.7%
Charter Capital 6,561 6,561 2.4% 17 -
Total Income 11,223 12,361 3.2% 13 -9.2%
Interest Income 9,716 10,602 3.4% 12 -8.4%
Net Provision Expenses (3,347) (1,500) 6.3% 5 123.1%
Net Profit after Taxes (1,697) 1,009 - 19 -268.2%
Total Comprehensive Income (1,697) 1,009 - 18 -268.2%
Amount, mln AMD
Share in total,
%
Rank
Change,
(6,000)
(4,000)
(2,000)
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Total
Income
Interest
Income
NPE NPT
2014 2013
-1.9%
-13.6%
5.1%
-15.1%
12.7%
71.7%
68.0%
16.7%
12.9%
-20% 0% 20% 40% 60% 80%
ROA
ROE
NIM
PM
Equity/Assets
Loan Portfolio/Assets
Cost to Income Ratio
Liquidity
Capital Adequacy
© 2015 KPMG Armenia cjsc. All rights reserved. 16
Bank Profiles (continued)
BTA Bank
Key Financial Indicators*
Key Indicators of the Financial Position Key Indicators of the Financial Results
* The indicators of the financial position are as of the last day of the corresponding period.
Key Ratios**
** The capital adequacy and liquidity ratios are taken from the key prudential ratios reported by the bank as of the end of the reporting period.
October November December
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
Assets Loan
Portfolio
Deposits Equity
As of 31.12.14 As of 31.12.13
2014 2013 2014/2013
Assets 16,389 11,562 0.5% 21 41.7%
Interest Earning Assets 11,553 7,657 0.4% 21 50.9%
Loan Portfolio 7,714 6,114 0.4% 20 26.2%
Liabilities 10,779 5,836 0.4% 21 84.7%
Deposits 4,063 3,835 0.2% 21 6.0%
Equity 5,610 5,727 1.1% 21 -2.0%
Charter Capital 6,520 6,520 2.4% 18 -
Total Income 1,709 1,593 0.5% 20 7.3%
Interest Income 1,415 1,413 0.5% 20 0.2%
Net Provision Expenses (152) 118 0.3% 17 -228.4%
Net Profit after Taxes (178) 79 - 17 -325.1%
Total Comprehensive Income (178) 150 - 16 -218.4%
Amount, mln AMD
Share in total,
%
Rank
Change,
(500)
-
500
1,000
1,500
2,000
Total
Income
Interest
Income
NPE NPT OCI
2014 2013
-1.3%
-3.1%
8.6%
-10.4%
34.2%
47.1%
100.4%
17.3%
43.6%
-30% 0% 30% 60% 90% 120%
ROA
ROE
NIM
PM
Equity/Assets
Loan Portfolio/Assets
Cost to Income Ratio
Liquidity
Capital Adequacy
© 2015 KPMG Armenia cjsc. All rights reserved. 17
Bank Profiles (continued)
Byblos Bank Armenia
Key Financial Indicators*
Key Indicators of the Financial Position Key Indicators of the Financial Results
* The indicators of the financial position are as of the last day of the corresponding period.
Key Ratios**
** The capital adequacy and liquidity ratios are taken from the key prudential ratios reported by the bank as of the end of the reporting period.
October November December
-
10,000
20,000
30,000
40,000
50,000
Assets Loan
Portfolio
Deposits Equity
As of 31.12.14 As of 31.12.13
2014 2013 2014/2013
Assets 53,891 42,616 1.6% 19 26.5%
Interest Earning Assets 48,089 32,654 1.8% 19 47.3%
Loan Portfolio 28,973 24,105 1.3% 19 20.2%
Liabilities 45,551 33,636 1.6% 19 35.4%
Deposits 33,838 24,389 2.0% 17 38.7%
Equity 8,340 8,979 1.7% 20 -7.1%
Charter Capital 8,125 8,125 3.0% 15 -
Total Income 3,871 3,882 1.1% 19 -0.3%
Interest Income 3,246 3,737 1.1% 19 -13.1%
Net Provision Expenses (758) (725) 1.4% 13 4.5%
Net Profit after Taxes (513) (349) - 18 47.0%
Total Comprehensive Income (639) (156) - 17 309.0%
Amount, mln AMD
Share in total,
%
Rank
Change,
(1,000)
-
1,000
2,000
3,000
4,000
5,000
Total
Income
Interest
Income
NPE NPT OCI
2014 2013
-1.1%
-5.9%
2.3%
-13.3%
15.5%
53.8%
85.7%
24.9%
17.8%
-20% 0% 20% 40% 60% 80% 100%
ROA
ROE
NIM
PM
Equity/Assets
Loan Portfolio/Assets
Cost to Income Ratio
Liquidity
Capital Adequacy
© 2015 KPMG Armenia cjsc. All rights reserved. 18
Bank Profiles (continued)
Converse Bank
Key Financial Indicators*
Key Indicators of the Financial Position Key Indicators of the Financial Results
* The indicators of the financial position are as of the last day of the corresponding period.
Key Ratios**
** The capital adequacy and liquidity ratios are taken from the key prudential ratios reported by the bank as of the end of the reporting period.
Rankings
Among the top ten banks by almost all financial
indicators.
October November December
The bank received the second tranche of USD
2.5 million of the loan from the EBRD to
finance the micro business and SME in the RA
1.8%
11.4%
6.3%
14.4%
15.4%
62.9%
60.7%
25.2%
12.4%
0% 20% 40% 60% 80%
ROA
ROE
NIM
PM
Equity/Assets
Loan Portfolio/Assets
Cost to Income Ratio
Liquidity
Capital Adequacy
2014 2013 2014/2013
Assets 148,767 121,394 4.4% 9 22.5%
Interest Earning Assets 109,604 90,654 4.2% 9 20.9%
Loan Portfolio 93,625 79,957 4.3% 9 17.1%
Liabilities 125,905 102,315 4.3% 9 23.1%
Deposits 98,024 84,296 5.8% 8 16.3%
Equity 22,862 19,080 4.7% 9 19.8%
Charter Capital 7,002 4,860 2.6% 16 44.1%
Total Income 16,516 13,762 4.7% 9 20.0%
Interest Income 12,583 10,897 4.4% 9 15.5%
Net Provision Expenses (756) (300) 1.4% 14 151.7%
Net Profit after Taxes 2,380 449 8.8% 7 430.0%
Total Comprehensive Income 2,380 2,419 15.4% 6 -1.7%
Amount, mln AMD
Share in total,
%
Rank
Change,
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Assets Loan
Portfolio
Deposits Equity
As of 31.12.14 As of 31.12.13
(5,000)
-
5,000
10,000
15,000
20,000
Total
Income
Interest
Income
NPE NPT
2014 2013
© 2015 KPMG Armenia cjsc. All rights reserved. 19
Bank Profiles (continued)
HSBC Bank Armenia
Key Financial Indicators*
Rankings
4th
rank by the assets
4th
rank by the loan portfolio
3rd
rank by the deposits
5th
rank by the charter capital
5th
rank by the total income
2nd
rank by the net profit after taxes
2nd
rank by the total comprehensive income
Among the top ten banks by almost all financial
indicators.
Key Indicators of the Financial Position Key Indicators of the Financial Results
* The indicators of the financial position are as of the last day of the corresponding period.
Key Ratios**
** The capital adequacy and liquidity ratios are taken from the key prudential ratios reported by the bank as of the end of the reporting period.
October November December
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
Assets Loan
Portfolio
Deposits Equity
As of 31.12.14 As of 31.12.13
2014 2013 2014/2013
Assets 306,609 249,424 9.0% 4 22.9%
Interest Earning Assets 256,039 214,783 9.8% 4 19.2%
Loan Portfolio 186,473 153,234 8.6% 4 21.7%
Liabilities 259,649 208,143 8.9% 4 24.7%
Deposits 172,769 159,195 10.2% 3 8.5%
Equity 46,960 41,281 9.6% 3 13.8%
Charter Capital 18,434 18,434 6.8% 5 -
Total Income 24,613 23,299 7.0% 5 5.6%
Interest Income 19,858 18,763 6.9% 6 5.8%
Net Provision Expenses (2,530) (552) 4.8% 7 358.3%
Net Profit after Taxes 6,565 8,010 24.2% 2 -18.0%
Total Comprehensive Income 5,676 8,846 36.7% 2 -35.8%
Amount, mln AMD
Share in total,
%
Rank
Change,
(5,000)
-
5,000
10,000
15,000
20,000
25,000
30,000
Total
Income
Interest
Income
NPE NPT OCI
2014 2013
2.4%
14.9%
6.3%
26.7%
15.3%
60.8%
41.6%
30.2%
13.8%
0% 20% 40% 60% 80%
ROA
ROE
NIM
PM
Equity/Assets
Loan Portfolio/Assets
Cost to Income Ratio
Liquidity
Capital Adequacy
© 2015 KPMG Armenia cjsc. All rights reserved. 20
Bank Profiles (continued)
Inecobank
Key Financial Indicators*
Key Indicators of the Financial Position Key Indicators of the Financial Results
Rankings
3rd
rank by the net profit after taxes
3rd
rank by the total comprehensive income
Among the top ten banks by almost all financial
indicators.
* The indicators of the financial position are as of the last day of the corresponding period.
Key Ratios**
** The capital adequacy and liquidity ratios are taken from the key prudential ratios reported by the bank as of the end of the reporting period.
October November December
The bank attracted loan from Symbiotics and
Responsability financial institutions to finance
micro business in the RA
The bank and the EBRD signed a loan
agreement of USD 10 million mainly to finance
SME and the renewable energy sector in the
RA
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
Assets Loan
Portfolio
Deposits Equity
As of 31.12.14 As of 31.12.13
2014 2013 2014/2013
Assets 160,344 130,559 4.7% 8 22.8%
Interest Earning Assets 129,441 110,086 5.0% 7 17.6%
Loan Portfolio 108,612 82,762 5.0% 8 31.2%
Liabilities 133,857 107,096 4.6% 8 25.0%
Deposits 43,728 35,779 2.6% 14 22.2%
Equity 26,487 23,463 5.4% 7 12.9%
Charter Capital 11,082 6,926 4.1% 11 60.0%
Total Income 19,655 16,944 5.6% 8 16.0%
Interest Income 16,521 14,631 5.7% 8 12.9%
Net Provision Expenses (1,539) (627) 2.9% 9 145.5%
Net Profit after Taxes 5,177 4,887 19.1% 3 5.9%
Total Comprehensive Income 4,735 5,433 30.7% 3 -12.9%
Amount, mln AMD
Share in total,
%
Rank
Change,
(5,000)
-
5,000
10,000
15,000
20,000
25,000
Total
Income
Interest
Income
NPE NPT OCI
2014 2013
3.6%
20.7%
8.2%
26.3%
16.5%
67.7%
37.0%
18.8%
13.7%
0% 20% 40% 60% 80%
ROA
ROE
NIM
PM
Equity/Assets
Loan Portfolio/Assets
Cost to Income Ratio
Liquidity
Capital Adequacy
© 2015 KPMG Armenia cjsc. All rights reserved. 21
Bank Profiles (continued)
Mellat Bank
Key Financial Indicators*
Key Indicators of the Financial Position Key Indicators of the Financial Results
* The indicators of the financial position are as of the last day of the corresponding period.
Key Ratios**
** The capital adequacy and liquidity ratios are taken from the key prudential ratios reported by the bank as of the end of the reporting period.
October November December
-
5,000
10,000
15,000
20,000
25,000
30,000
Assets Loan
Portfolio
Deposits Equity
As of 31.12.14 As of 31.12.13
2014 2013 2014/2013
Assets 27,637 18,965 0.8% 20 45.7%
Interest Earning Assets 17,096 11,719 0.7% 20 45.9%
Loan Portfolio 5,524 4,824 0.3% 21 14.5%
Liabilities 16,429 7,984 0.6% 20 105.8%
Deposits 7,120 1,278 0.4% 20 457.3%
Equity 11,208 10,981 2.3% 16 2.1%
Charter Capital 10,100 6,850 3.7% 12 47.4%
Total Income 1,458 1,134 0.4% 21 28.6%
Interest Income 1,334 1,070 0.5% 21 24.7%
Net Provision Expenses (151) (36) 0.3% 18 314.9%
Net Profit after Taxes 227 234 0.8% 16 -3.0%
Total Comprehensive Income 227 234 1.5% 13 -3.0%
Amount, mln AMD
Share in total,
%
Rank
Change,
(200)
-
200
400
600
800
1,000
1,200
1,400
1,600
Total
Income
Interest
Income
NPE NPT
2014 2013
1.0%
2.0%
7.5%
15.6%
40.6%
20.0%
62.2%
61.1%
77.1%
0% 20% 40% 60% 80% 100%
ROA
ROE
NIM
PM
Equity/Assets
Loan Portfolio/Assets
Cost to Income Ratio
Liquidity
Capital Adequacy
© 2015 KPMG Armenia cjsc. All rights reserved. 22
Bank Profiles (continued)
ProCredit Bank
Key Financial Indicators*
Key Indicators of the Financial Position Key Indicators of the Financial Results
* The indicators of the financial position are as of the last day of the corresponding period.
Key Ratios**
** The capital adequacy and liquidity ratios are taken from the key prudential ratios reported by the bank as of the end of the reporting period.
October November December
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Assets Loan
Portfolio
Deposits Equity
As of 31.12.14 As of 31.12.13
2014 2013 2014/2013
Assets 66,485 52,793 1.9% 18 25.9%
Interest Earning Assets 52,703 45,437 2.0% 18 16.0%
Loan Portfolio 52,255 42,682 2.4% 14 22.4%
Liabilities 57,317 44,128 2.0% 17 29.9%
Deposits 25,863 24,648 1.5% 19 4.9%
Equity 9,167 8,665 1.9% 19 5.8%
Charter Capital 9,990 9,990 3.7% 13 -
Total Income 7,669 6,446 2.2% 17 19.0%
Interest Income 6,938 5,895 2.4% 16 17.7%
Net Provision Expenses (814) (264) 1.5% 12 208.8%
Net Profit after Taxes 502 22 1.8% 14 2232.3%
Total Comprehensive Income 502 22 3.3% 11 2232.3%
Amount, mln AMD
Share in total,
%
Rank
Change,
(2,000)
-
2,000
4,000
6,000
8,000
10,000
Total
Income
Interest
Income
NPE NPT
2014 2013
0.8%
5.6%
8.6%
6.5%
13.8%
78.6%
69.3%
17.1%
14.1%
0% 20% 40% 60% 80% 100%
ROA
ROE
NIM
PM
Equity/Assets
Loan Portfolio/Assets
Cost to Income Ratio
Liquidity
Capital Adequacy
© 2015 KPMG Armenia cjsc. All rights reserved. 23
Bank Profiles (continued)
Prometey Bank
Key Financial Indicators*
Key Indicators of the Financial Position Key Indicators of the Financial Results
* The indicators of the financial position are as of the last day of the corresponding period.
Key Ratios**
** The capital adequacy and liquidity ratios are taken from the key prudential ratios reported by the bank as of the end of the reporting period.
October November December
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
Assets Loan
Portfolio
Deposits Equity
As of 31.12.14 As of 31.12.13
2014 2013 2014/2013
Assets 77,950 62,831 2.3% 16 24.1%
Interest Earning Assets 53,335 41,284 2.0% 17 29.2%
Loan Portfolio 36,951 29,746 1.7% 18 24.2%
Liabilities 54,638 40,778 1.9% 18 34.0%
Deposits 30,004 26,164 1.8% 18 14.7%
Equity 23,312 22,053 4.8% 8 5.7%
Charter Capital 14,400 14,400 5.3% 8 -
Total Income 6,678 6,560 1.9% 18 1.8%
Interest Income 5,285 5,217 1.8% 18 1.3%
Net Provision Expenses (184) (259) 0.3% 16 -29.0%
Net Profit after Taxes 1,108 1,411 4.1% 9 -21.5%
Total Comprehensive Income 2,154 1,823 13.9% 7 18.2%
Amount, mln AMD
Share in total,
%
Rank
Change,
(1,000)
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Total
Income
Interest
Income
NPE NPT OCI
2014 2013
1.6%
4.9%
5.1%
16.6%
29.9%
47.4%
53.1%
28.8%
29.0%
0% 10% 20% 30% 40% 50% 60%
ROA
ROE
NIM
PM
Equity/Assets
Loan Portfolio/Assets
Cost to Income Ratio
Liquidity
Capital Adequacy
© 2015 KPMG Armenia cjsc. All rights reserved. 24
Bank Profiles (continued)
Unibank
Key Financial Indicators*
Key Indicators of the Financial Position Key Indicators of the Financial Results
Rankings
Among the top ten banks by almost all financial
indicators.
* The indicators of the financial position are as of the last day of the corresponding period.
Key Ratios**
** The capital adequacy and liquidity ratios are taken from the key prudential ratios reported by the bank as of the end of the reporting period.
October November December
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
Assets Loan
Portfolio
Deposits Equity
As of 31.12.14 As of 31.12.13
2014 2013 2014/2013
Assets 171,049 153,490 5.0% 7 11.4%
Interest Earning Assets 128,738 126,370 4.9% 8 1.9%
Loan Portfolio 119,484 116,795 5.5% 7 2.3%
Liabilities 149,818 132,739 5.1% 7 12.9%
Deposits 113,709 127,081 6.7% 7 -10.5%
Equity 21,231 20,750 4.3% 11 2.3%
Charter Capital 13,101 13,101 4.8% 9 -
Total Income 22,569 20,524 6.4% 7 10.0%
Interest Income 18,465 16,829 6.4% 7 9.7%
Net Provision Expenses (3,026) (1,018) 5.7% 6 197.2%
Net Profit after Taxes 962 484 3.5% 10 98.9%
Total Comprehensive Income 1,443 1,037 9.3% 9 39.1%
Amount, mln AMD
Share in total,
%
Rank
Change,
(5,000)
-
5,000
10,000
15,000
20,000
25,000
Total
Income
Interest
Income
NPE NPT OCI
2014 2013
0.6%
4.6%
5.0%
4.3%
12.4%
69.9%
58.8%
23.0%
13.9%
0% 20% 40% 60% 80%
ROA
ROE
NIM
PM
Equity/Assets
Loan Portfolio/Assets
Cost to Income Ratio
Liquidity
Capital Adequacy
© 2015 KPMG Armenia cjsc. All rights reserved. 25
Bank Profiles (continued)
VTB Bank (Armenia)
Key Financial Indicators*
Rankings
2nd
rank by the assets
2nd
rank by the loan portfolio
4th
rank by the deposits
4th
rank by the charter capital
1st
rank by the total income
Among the top ten banks by almost all financial
indicators
Key Indicators of the Financial Position Key Indicators of the Financial Results
* The indicators of the financial position are as of the last day of the corresponding period.
Key Ratios**
** The capital adequacy and liquidity ratios are taken from the key prudential ratios reported by the bank as of the end of the reporting period.
October November December
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
Assets Loan
Portfolio
Deposits Equity
As of 31.12.14 As of 31.12.13
2014 2013 2014/2013
Assets 379,636 302,275 11.1% 2 25.6%
Interest Earning Assets 286,337 249,815 11.0% 2 14.6%
Loan Portfolio 244,343 218,803 11.3% 2 11.7%
Liabilities 334,862 265,021 11.5% 2 26.4%
Deposits 156,251 146,865 9.2% 4 6.4%
Equity 44,774 37,254 9.2% 4 20.2%
Charter Capital 20,776 13,776 7.6% 4 50.8%
Total Income 43,421 38,910 12.3% 1 11.6%
Interest Income 38,046 30,475 13.2% 1 24.8%
Net Provision Expenses (8,852) (3,454) 16.6% 2 156.3%
Net Profit after Taxes 777 5,638 2.9% 13 -86.2%
Total Comprehensive Income 31 6,949 0.2% 15 -99.5%
Amount, mln AMD
Share in total,
%
Rank
Change,
(20,000)
(10,000)
-
10,000
20,000
30,000
40,000
50,000
Total
Income
Interest
Income
NPE NPT OCI
2014 2013
0.2%
1.9%
7.5%
1.8%
11.8%
64.4%
59.5%
15.9%
13.0%
0% 20% 40% 60% 80%
ROA
ROE
NIM
PM
Equity/Assets
Loan Portfolio/Assets
Cost to Income Ratio
Liquidity
Capital Adequacy
© 2015 KPMG Armenia cjsc. All rights reserved. 26
Appendix 1
Shareholding Structure & General Information
The shareholding structure of the Armenian banks is very different. There are both resident and non-
resident shareholders. Meanwhile, almost in all the Armenian banks non-resident shareholders are
presented. The non-resident participants, both legal entities and individuals, are mainly from Russia,
Switzerland, Iran, Lebanon, Liechtenstein, Cyprus, France, the United Kingdom, the USA and
Kazakhstan. There are several international organizations that have shares in several Armenian
banks (e.g. IFC, DEG, EBRD, KfW and OPEC Fund for International Development).
During the reviewed period there were no mergers and/or acquisitions within the sector.
The shareholding structure and information on branches and the staff for each bank is presented
below*.
Anelik Bank
Shareholders (> 5%):
Credit Bank S.A.L. (100%)
Branches: 14 (8 in Yerevan)
Staff: 393 employees
Areximbank-Gazprombank
Group
Shareholders (> 5%):
Gazprombank OJSC (100%)
Branches: 17 (8 in Yerevan)
Staff: 473 employees
Ardshinbank
Shareholders (> 5%):
Center for Business
InvestmentsLLC (97.51%)
Branches: 55 (13 in Yerevan)
Staff: 1,094 employees
Armenian Development Bank
Shareholders (> 5%):
Ruben Hayrapetyan (20%)
Rafik Hayrapetyan (19.5%)
Grigor Termenjyan (16%)
Branches: 9 (5 in Yerevan)
Staff: 218 employees
Ararat Bank
Shareholders (> 5%):
Flash Ltd. (64.2%)
EBRD (25%)
Rural Impulse
Fund II S.A SICAV-SIF (10%)
Branches: 49 (25 in Yerevan)
Staff: 665 employees
Ameriabank
Shareholders (> 5%):
Ameria Group (CY) Limited (100%)
Branches: 11 (7 in Yerevan)
Staff: 612 employees
ACBA-Credit Agricole Bank
Shareholders (> 5%):
Credit Agricole s.A (15.6%)
Sacam International SJSC (12.4%)
Mutual Regional Village
Associations from different
marzes of RA (71%)
Branches: 52 (14 in Yerevan)
Staff: 1,162 employees
Armeconombank
Shareholders (> 5%):
Saribek Sukiasyan (22.6%)
Khachatur Sukiasyan (19.5%)
Robert Sukiasyan (10.3%)
EBRD (25.0%)
Branches: 41 (20 in Yerevan)
Staff: 936 employees
Armbusinessbank
Shareholders (> 5%):
Vitaliy Sarkis Grigoryants (100%)
Branches: 35 (16 in Yerevan)
Staff: 762 employees
* The figures presented in different color and italic form are those changed during the 4rd
quarter of
2014.
© 2015 KPMG Armenia cjsc. All rights reserved. 27
Appendix 1
Shareholding Structure & General Information
(continued)
VTB Bank (Armenia)
Shareholders (> 5%):
VTB OJSC (100%)
Branches: 67 (23 in Yerevan)
Staff: 1298 employees
Mellat Bank
Shareholders (> 5%):
Bank Mellat of I.R.I (100%)
Branches: -
Staff: 40 employees
BTA Bank
Shareholders (> 5%):
BTA Bank JSC (44.7%)
ZRL Beteiligungs AG (31.1%)
Mobilex Energy LLC (14.5%)
Branches: 5 (4 in Yerevan)
Staff: 138 employees
Prometey Bank
Shareholders (> 5%):
Prometey City LLC (50%)
ZakNeftegazstroy
Prometey OJSC (46.1%)
Branches: 10 (7 in Yerevan)
Staff: 221 employees
Unibank
Shareholders (> 5%):
Ripatonso Holdings Limited (100%)
Branches: 45 (23 in Yerevan)
Staff: 990 employees
ArmSwissBank
Shareholders (> 5%):
Vartan Sirmakes (80%)
“Belegingsmachepij
Jongo” LLC (20%)
Branches: -
Staff: 107* employees
ProCredit Bank
Shareholders (> 5%):
ProCredit Holding AG & Co. (100%)
Branches: 11 (7 in Yerevan)
Staff: 211 employees
Artsakh Bank
Shareholders (> 5%):
Vartan Sirmakes (43.1%)
Hrach Gabrielyan (39.1%)
Branches: 23 (8 in Yerevan)
Staff: 715 employees
HSBC Bank Armenia
Shareholders (> 5%):
HSBC Europe BV (70%)
Wings Establishment (30%)
Branches: 10 (10 in Yerevan)
Staff: 385 employees
Byblos Bank Armenia
Shareholders (> 5%):
Byblos Bank S.A.L. (65%)
EBRD (25%)
OPEC Fund for International
Development (10%)
Branches: 5 (4 in Yerevan)
Staff: 100 employees
Inecobank
Shareholders (> 5%):
Avetis Baloyan (35.2%)
Karen Safaryan (30.3%)
DEG (12.6%)
IFC (9.3%)
Branches: 17 (8 in Yerevan)
Staff: 667 employees
Converse Bank
Shareholders (> 5%):
Advanced Global Investments LLC
(95%)
Mother See of Holy Etchmiadzin
Catholicosate (5%)
Branches: 35 (14 in Yerevan)
Staff: 728 employees
* The figures presented in different color and italic form are those changed during the 4rd
quarter of
2014.
© 2015 KPMG Armenia cjsc. All rights reserved. 28
Appendix 2
Sector Insights
Assets
As of 31 December 2014 the assets grew in almost all the banks, and only two banks suffered
decreases as compared with the previous year.
The interest earning assets comprised 76.3% of the total assets of the banks. As of 31 December
2014 the interest earning assets of banks grew by 19.3% compared with 31 December 2013. In
the meantime, the interest income grew by 9.2% as compared with the same date of the previous
year.
The net interest margin was 5.9% for the reviewed period.
As of 31 December 2014 "AmeriaBank" CJSC had the highest value of assets - about AMD 399.7
billion, which is 11.7% of the total assets of the banking sector."BTA Bank" CJSC had the lowest
level – AMD 16.4 billion (0.5% in total assets). It is worth mentioning that the top five banks
(ranked by assets) totaled 51.1% of the assets of the banking system as of 31 December 2014.
Nevertheless, the banking industry concentration is not high and is defined as unconcentrated
according to the Herfindahl-Hirschman Index, which has the value of 0.073. Compared with the
previous year the HHI increased by 0.003.
Loan portfolio
The top five banks (ranked by loans) recorded 52.5% of the total loan portfolio as of 31 December
2014.
The major part (95.6%) of the total sum of the outstanding loans was provided to the residents of
Armenia, from which 56.5% were companies (only 1.8% of this amount was provided to state
owned companies), 38.8% - to the households, and only a small part to not for profit organizations
and other financial organizations (OFI). Compared with the same period of the previous year the
share of loans to households in the total amount of outstanding loans has increased by 0.4
percentage points and the share of companies has decreased by 0.3 percentage points.
As for the base currencies of the
loans, it should be noted that
households and other financial
institutions are mainly provided with
loans in AMD (62.3% and 75.3% of
the total loans provided to them
respectively) in contrast to companies
and non for profit organizations, which
prefer loans in foreign currencies
(84.8% and 88.6% of total loans
provided to them respectively).
Structure of loans by creditors
Private sector55%
Households39%
Private sector
Households
Non for profit
OFI
State ownedcompanies
© 2015 KPMG Armenia cjsc. All rights reserved. 29
The consumer loans, loans to industry and loans to the trade sector traditionally comprise the
major part of the total loans of the banks, 22.5%, 21.3% and 19.2% respectively for the reviewed
period. The biggest growth in lending was in the loans to the service sector (compared to the 31
December 2013, the volume of loans grew by 45.7%).
Net Provision Expenses
As of 31 December 2014 the banking system total net provision expenses increased by 164.5%
and reached AMD 53.2 billion.
Liabilities
As of 31 December 2014 the banking system total liabilities grew by 18.3%, compared with the
same figure as of 31 December 2013, to reach AMD 2,921.8 billion, of which 58.2% are deposits.
Deposits
As of 31 December 2014 the biggest share for term deposits was held by households and the
biggest share on demand deposits were held by private sector (79.2% and 45.3%).
The major part of outstanding balance of the deposits was from the residents (75.1%), 70.5% of
which were term deposits. The deposits were held mainly in foreign currencies.
Appendix 2
Sector Insights (continued)
Structure of loans by economy sectors
Structure of deposits
The biggest loan portfolio
belonged to “Ameriabank" CJSC –
AMD 300.4 billion, which
comprised 13.9% of the portfolio
of the banking system for the
reported period.
As of 31 December 2014 the
loans/deposits ratio was 1.272
compared with 1.099 calculated
as of 31 December 2013.
Residents75%
Non residents
25%
Other currency
72%
AMD28%
21%
6%
6%
2%
19%7%
23%
9%
7%Industry
Agriculture
Construction
Transport and
Communication
Trade
Service sector
Consumer loans
Mortgage
Other
Term70%
On demand*30%
* The indicators of the deposits duration are presented only based on the deposits from the residents
© 2015 KPMG Armenia cjsc. All rights reserved. 30
Appendix 2
Sector Insights (continued)
Equity
The 4.2% increase of equity of the banking sector as of 31 December 2014 compared to the same
date in 2013 was mainly due to the additions to the general reserve (24.0% increase compared to
the figure for the previous period).
The total equity to total assets ratio was 14.3%, which is 1.7 percentage points lower compared to
the same ratio of 2013 (16.0%).
As of 31 December 2014 "ACBA-Credit Agricole Bank" CJSC had the highest level of equity - about
AMD 49.4 billion, which is 10.1% of the total equity of the banking system. "BTA Bank" CJSC had
the lowest level – AMD 5.6 billion (1.1% in total equity). 47.2% of the total equity of the banking
system belonged to the top five banks (ranked by the equity) as of 31 December 2014.
Income
The income from interest was about AMD 288.7 billion, which is about 81.7% (2013 same period
82.5%) of the total income of the banking system.
The total income of the banking system increased by 10.3% compared with the same period of
the previews year and reached AMD 353.5 billion. 49.1% of total income of the banking system
belonged to the top 5 banks (ranked by the total income).
All the banks increased their income compared to the 2013, except for "ArtsakhBank" CJSC,
"AreximBank-GazPromBank Group" CJSC and "Byblos Bank Armenia" CJSC which had decreases in
total income of 9.2%, 2.5% and 0.3% respectively.
Profit/loss
During the reported period 16 banks operating in Armenia were profitable (totaled AMD 50.3 billion
profit before taxes), while 5 banks incurred total losses before taxes of AMD 13.6 billion.
The net profit after taxes of the banking system for the period ended 31 December 2014 was
AMD 27.2 billion.
Structure of depositsAs the diagram shows, the households
had the biggest share (67.8%) in the
total amount of deposits from residents
followed by the private companies which
held (20.3%) of the total deposits from
residents.
The highest level of deposits was held
by “AmeriaBank" CJSC - about AMD
208.7 billion, which comprises 12.3% of
the total deposits of the banking system
of Armenia.
As of 31 December 2014 four banks had
decreases in deposits of 74.0%, 10.5%,
5.5% and 4.0% respectively compared
to the same date of 2013.
68%
20%
5%6%
1%
Households Private companies
Non for Profit Organizations OFI
State owned companies
© 2015 KPMG Armenia cjsc. All rights reserved. 31
Appendix 2
Sector Insights (continued)
Changes in the Banking Prudential Standards
New requirements on the Minimum Total Capital and Minimum Required Reserves on
Funds Involved in Foreign Currency.
During December 2014 the CBA increased the rate of minimum required reserves on funds
involved in foreign currency to eventual level of 20%. The CBA also increased the refinancing rate
and repurchase agreements rates.
On 30 December 2014 the Central Bank of Armenia changed the standard on minimal amount of
total capital for banks. As a result of the changes, the required minimum amount of total capital
increased six times from AMD 5.0 billion to AMD 30.0 billion.
For the existing banks, the revised standard will enter into force starting from 1 January 2017.
Before this date the required minimum amount of total capital will remain AMD 5.0 billion.
For the new establishing banks, the revised standard entry into force immediately. The required
amount of total capital for establishing the new bank was stated AMD 30.0 billion.
Due to the specifics of total capital calculation for reporting to the CBA, there is some differences
between amounts of total capital calculated according IFRS and methodology of CBA . The amount
of banks’ total capitals calculated according to the CBA methodology are presented in the table
below:
AMD MillionReported Total
Capital
Amount needed to
achieve the new
standard
Required growth in
total capital to achieve
the new standard
1 "ACBA-Credit Agricole Bank" CJSC 42,180 - -
2 "AmeriaBank" CJSC 53,323 - -
3 "Anelik Bank" CJSC 10,821 19,179 177.2%
4 "AraratBank" OJSC 21,450 8,550 39.9%
5 "Ardshinbank" CJSC 36,622 - -
6 "AreximBank-GazPromBank Group" CJSC 11,907 18,093 152.0%
7 "ArmBusinessBank" CJSC 24,689 5,311 21.5%
8 "ArmEconomBank" OJSC 9,296 20,704 222.7%
9 "Armenian Development Bank" OJSC 8,944 21,056 235.4%
10 "ArmSwissBank" CJSC 18,504 11,496 62.1%
11 "ArtsakhBank" CJSC 9,056 20,944 231.3%
12 "BTA Bank" CJSC 5,662 24,338 429.8%
13 "Byblos Bank Armenia" CJSC 7,063 22,937 324.8%
14 "Converse Bank" CJSC 17,369 12,631 72.7%
15 "HSBC Bank Armenia" CJSC 41,341 - -
16 "InecoBank" CJSC 23,099 6,901 29.9%
17 "Mellat Bank" CJSC 9,018 20,982 232.7%
18 "ProCredit Bank" CJSC 10,541 19,459 184.6%
19 "Prometey Bank" LLC 18,477 11,523 62.4%
20 "UniBank" CJSC 22,013 7,987 36.3%
21 "VTB Bank Armenia" CJSC 50,801 - -
© 2015 KPMG Armenia cjsc. All rights reserved. 32
Appendix 3
Key Financial Indicators
Key Indicators of the Financial Position as of 31.12.2014
AMD Million Assets
Interest
Earning
Assets
Gross
Advances
to
Customers
Loans Liabilities Deposits Equity
Charter
Capital
1
"ACBA-Credit Agricole
Bank" CJSC286,410 213,669 204,047 179,530 237,039 123,666 49,371 30,000
2 "AmeriaBank" CJSC 399,744 325,891 301,517 300,359 357,389 208,697 42,355 25,448
3 "Anelik Bank" CJSC 87,034 63,586 61,132 58,615 72,629 48,531 14,405 11,816
4 "AraratBank" OJSC 138,830 92,368 76,944 65,771 117,058 64,768 21,771 6,388
5 "Ardshinbank" CJSC 369,090 265,022 247,824 220,148 321,695 182,811 47,395 17,925
6
"AreximBank-
GazPromBank Group"
CJSC
110,728 72,275 70,452 69,078 95,068 41,811 15,661 16,452
7
"ArmBusinessBank"
CJSC268,935 211,974 190,190 184,415 241,291 145,569 27,644 22,908
8
"ArmEconomBank"
OJSC91,986 66,711 60,253 52,095 80,845 57,529 11,141 2,333
9
"Armenian
Development Bank"
OJSC
75,819 58,016 48,005 47,935 65,890 51,773 9,929 4,526
10 "ArmSwissBank" CJSC 84,493 70,255 40,292 37,385 66,607 34,642 17,886 8,753
11 "ArtsakhBank" CJSC 88,758 71,240 64,224 63,683 77,524 55,915 11,233 6,561
12 "BTA Bank" CJSC 16,389 11,553 7,869 7,714 10,779 4,063 5,610 6,520
13
"Byblos Bank Armenia"
CJSC53,891 48,089 44,907 28,973 45,551 33,838 8,340 8,125
14 "Converse Bank" CJSC 148,767 109,604 100,986 93,625 125,905 98,024 22,862 7,002
15
"HSBC Bank Armenia"
CJSC306,609 256,039 221,401 186,473 259,649 172,769 46,960 18,434
16 "InecoBank" CJSC 160,344 129,441 117,312 108,612 133,857 43,728 26,487 11,082
17 "Mellat Bank" CJSC 27,637 17,096 10,306 5,524 16,429 7,120 11,208 10,100
18 "ProCredit Bank" CJSC 66,485 52,703 52,693 52,255 57,317 25,863 9,167 9,990
19 "Prometey Bank" LLC 77,950 53,335 43,096 36,951 54,638 30,004 23,312 14,400
20 "UniBank" CJSC 171,049 128,738 123,665 119,484 149,818 113,709 21,231 13,101
21
"VTB Bank Armenia"
CJSC 379,636 286,337 262,997 244,343 334,862 156,251 44,774 20,776
Total 3,410,584 2,603,941 2,350,111 2,162,966 2,921,841 1,701,080 488,743 272,640
© 2015 KPMG Armenia cjsc. All rights reserved. 33
Appendix 3
Key Financial Indicators (continued)
Key Indicators of the Financial Results for the period ended 31.12.2014
* Net operating income is before provisions and administrative expenses.
AMD Million
Total
Income
Interest
Income
Non-
Interest
Income
Net
Interest
Income
Net
Non-
Interest
Income
Net
Operating
Income*
Operating
Expenses
Net
Provision
Expenses
Net Profit
before
taxes
Net
Profit
after
taxes
1
"ACBA-Credit Agricole
Bank" CJSC36,985 28,759 3,075 15,083 1,759 21,993 (11,690) (14,739) (4,436) (4,625)
2 "AmeriaBank" CJSC 33,572 27,712 2,307 14,625 1,875 20,053 (9,296) (1,731) 9,026 7,149
3 "Anelik Bank" CJSC 8,501 6,383 1,123 1,966 993 3,954 (3,580) 159 532 335
4 "AraratBank" OJSC 13,722 11,083 987 6,251 596 8,499 (4,218) (709) 3,572 2,947
5 "Ardshinbank" CJSC 35,011 27,499 3,585 11,386 2,976 18,289 (8,522) (4,593) 5,174 4,171
6
"AreximBank-
GazPromBank Group"
CJSC
13,396 9,881 891 3,848 537 7,009 (4,914) (8,817) (6,722) (5,669)
7
"ArmBusinessBank"
CJSC23,983 20,166 1,932 5,356 1,503 8,743 (5,750) 1,504 4,497 3,527
8
"ArmEconomBank"
OJSC11,229 8,332 1,509 4,239 1,174 6,800 (5,666) 42 1,176 886
9
"Armenian
Development Bank"
OJSC
8,637 7,791 397 3,112 291 3,852 (1,943) (993) 916 816
10
"ArmSwissBank"
CJSC9,040 7,663 203 3,865 156 5,194 (1,124) (1,230) 2,839 2,307
11 "ArtsakhBank" CJSC 11,223 9,716 574 3,761 467 5,163 (3,513) (3,347) (1,697) (1,697)
12 "BTA Bank" CJSC 1,709 1,415 258 826 88 950 (954) (152) (156) (178)
13
"Byblos Bank
Armenia" CJSC3,871 3,246 92 928 43 1,505 (1,290) (758) (543) (513)
14
"Converse Bank"
CJSC16,516 12,583 1,666 6,311 1,129 9,707 (5,896) (756) 3,055 2,380
15
"HSBC Bank Armenia"
CJSC24,613 19,858 2,710 14,763 2,162 18,970 (7,896) (2,530) 8,544 6,565
16 "InecoBank" CJSC 19,655 16,521 1,235 9,800 934 12,634 (4,674) (1,539) 6,421 5,177
17 "Mellat Bank" CJSC 1,458 1,334 53 1,075 52 1,198 (744) (151) 302 227
18
"ProCredit Bank"
CJSC7,669 6,938 388 4,232 198 4,772 (3,306) (814) 652 502
19 "Prometey Bank" LLC 6,678 5,285 337 2,393 (118) 3,330 (1,769) (184) 1,377 1,108
20 "UniBank" CJSC 22,569 18,465 2,167 6,439 1,852 10,228 (6,015) (3,026) 1,187 962
21
"VTB Bank Armenia"
CJSC 43,421 38,046 3,276 19,985 2,357 24,441 (14,553) (8,852) 1,036 777
Total 353,459 288,677 28,766 140,242 21,025 197,283 (107,315) (53,216) 36,752 27,155
© 2015 KPMG Armenia cjsc. All rights reserved. 34
Appendix 3
Key Financial Indicators (continued)
Key Indicators of the Financial Position as of 31.12.2013
AMD Million Assets
Interest
Earning
Assets
Gross
Advances
to
Customers
Loans Liabilities Deposits Equity
Charter
Capital
1
"ACBA-Credit Agricole
Bank" CJSC267,683 203,776 196,152 169,282 213,533 107,880 54,150 30,000
2 "AmeriaBank" CJSC 315,048 211,215 188,207 185,100 276,342 169,942 38,706 25,448
3 "Anelik Bank" CJSC 60,029 43,930 43,568 38,597 46,959 33,237 13,070 10,816
4 "AraratBank" OJSC 125,236 78,497 65,147 59,594 105,604 68,542 19,633 6,388
5 "Ardshinbank" CJSC 269,328 205,299 182,778 172,287 225,211 159,156 44,117 13,802
6
"AreximBank-
GazPromBank Group"
CJSC
233,438 99,969 96,376 92,768 212,108 160,800 21,329 16,452
7
"ArmBusinessBank"
CJSC219,459 166,714 141,669 137,220 194,538 116,508 24,921 17,500
8
"ArmEconomBank"
OJSC74,163 55,137 47,722 40,694 63,100 44,435 11,064 2,333
9
"Armenian
Development Bank"
OJSC
68,508 50,761 43,253 40,188 59,345 53,950 9,164 4,526
10 "ArmSwissBank" CJSC 69,811 61,190 30,138 27,802 48,649 24,155 21,162 8,753
11 "ArtsakhBank" CJSC 89,977 75,220 68,995 62,107 76,323 51,112 13,653 6,561
12 "BTA Bank" CJSC 11,562 7,657 6,620 6,114 5,836 3,835 5,727 6,520
13
"Byblos Bank Armenia"
CJSC42,616 32,654 29,215 24,105 33,636 24,389 8,979 8,125
14 "Converse Bank" CJSC 121,394 90,654 82,841 79,957 102,315 84,296 19,080 4,860
15
"HSBC Bank Armenia"
CJSC249,424 214,783 181,431 153,234 208,143 159,195 41,281 18,434
16 "InecoBank" CJSC 130,559 110,086 100,672 82,762 107,096 35,779 23,463 6,926
17 "Mellat Bank" CJSC 18,965 11,719 6,666 4,824 7,984 1,278 10,981 6,850
18 "ProCredit Bank" CJSC 52,793 45,437 45,427 42,682 44,128 24,648 8,665 9,990
19 "Prometey Bank" LLC 62,831 41,284 35,137 29,746 40,778 26,164 22,053 14,400
20 "UniBank" CJSC 153,490 126,370 120,887 116,795 132,739 127,081 20,750 13,101
21
"VTB Bank Armenia"
CJSC 302,275 249,815 233,395 218,803 265,021 146,865 37,254 13,776
Total 2,938,589 2,182,168 1,946,297 1,784,663 2,469,388 1,623,247 469,201 245,562
© 2015 KPMG Armenia cjsc. All rights reserved. 35
Appendix 3
Key Financial Indicators (continued)
Key Indicators of the Financial Results for the period ended 31.12.2013
* Net operating income is before provisions and administrative expenses.
AMD Million
Total
Income
Interest
Income
Non-
Interest
Income
Net
Interest
Income
Net
Non-
Interest
Income
Net
Operating
Income*
Operating
Expenses
Net
Provision
Expenses
Net Profit
before
taxes
Net
Profit
after
taxes
1
"ACBA-Credit Agricole
Bank" CJSC33,904 28,775 2,714 15,571 1,669 19,655 (11,600) (1,472) 6,583 4,999
2 "AmeriaBank" CJSC 27,736 22,769 2,055 11,659 1,642 16,212 (6,566) (1,960) 7,687 6,057
3 "Anelik Bank" CJSC 6,280 5,407 495 1,751 438 2,567 (3,363) (648) (1,445) (1,444)
4 "AraratBank" OJSC 13,351 10,892 1,020 6,065 672 8,177 (3,809) (486) 3,882 3,083
5 "Ardshinbank" CJSC 33,232 26,973 3,012 14,279 2,547 20,072 (8,363) (3,655) 8,054 6,420
6
"AreximBank-
GazPromBank Group"
CJSC
13,746 11,352 976 4,469 580 6,468 (5,096) (1,122) 250 109
7
"ArmBusinessBank"
CJSC21,694 18,767 1,528 5,962 982 8,343 (5,331) (886) 2,126 1,891
8
"ArmEconomBank"
OJSC10,016 7,237 1,641 3,736 1,256 6,130 (5,019) (140) 971 717
9
"Armenian
Development Bank"
OJSC
7,691 6,460 371 2,207 269 3,337 (2,037) (179) 1,121 845
10
"ArmSwissBank"
CJSC7,335 6,195 212 3,025 170 4,124 (1,008) (957) 2,159 1,742
11 "ArtsakhBank" CJSC 12,361 10,602 601 4,435 437 6,031 (3,271) (1,500) 1,259 1,009
12 "BTA Bank" CJSC 1,593 1,413 98 858 41 981 (988) 118 111 79
13
"Byblos Bank
Armenia" CJSC3,882 3,737 92 1,391 44 1,488 (1,149) (725) (385) (349)
14
"Converse Bank"
CJSC13,762 10,897 1,365 5,153 848 7,501 (6,459) (300) 741 449
15
"HSBC Bank Armenia"
CJSC23,299 18,763 2,610 14,273 2,150 18,349 (7,654) (552) 10,144 8,010
16 "InecoBank" CJSC 16,944 14,631 992 8,655 822 10,798 (4,013) (627) 6,157 4,887
17 "Mellat Bank" CJSC 1,134 1,070 36 1,058 35 1,121 (758) (36) 327 234
18
"ProCredit Bank"
CJSC6,446 5,895 346 3,409 150 3,764 (3,397) (264) 104 22
19 "Prometey Bank" LLC 6,560 5,217 298 2,752 (66) 3,731 (1,689) (259) 1,784 1,411
20 "UniBank" CJSC 20,524 16,829 1,355 5,608 1,083 9,031 (7,119) (1,018) 895 484
21
"VTB Bank Armenia"
CJSC 38,910 30,475 2,669 15,188 2,040 22,995 (12,212) (3,454) 7,329 5,638
Total 320,401 264,355 24,485 131,503 17,810 180,874 (100,901) (20,121) 59,852 46,292
© 2015 KPMG Armenia cjsc. All rights reserved. 36
Appendix 4
Bank Contact Details
ACBA-Credit Agricole Bank
Director: Hakob Andreasyan
Address: 1Byron str., Yerevan
Tel./Fax: (+37410) 318888
TELEX: 243-103 ACBA AM
E-mail: [email protected]
Website: acba.am
SWIFT: AGCAAM22
Anelik Bank
Director: Nerses Karamanukyan
Address: 13 Vardanants str.,
Yerevan, RA
Tel./Fax: (+37410) 593333,
(+37460) 273333
TELEX: ANELSU
E-mail: [email protected]
Website: anelik.am
SWIFT: ANIKAM22
Ameria bank
Director: Artak Hanesyan
Address: 9 Grigor Lusavorchi str.,
Yerevan, RA
Tel./Fax: (+37410) 561111,
513133
TELEX: 684-243352
E-mail: [email protected]
Website: ameriabank.am
SWIFT: ARMIAM22
Ararat Bank
Director: Ashot Osipyan
Address: 19 Pushkin str.,
Yerevan, RA
Tel./Fax: (+37410) 592323,
(+37410) 547894
TELEX: -
E-mail:
Website: araratbank.am
SWIFT: ARMCAM22
Ardshinbank
Director: Mher Grigoryan
Address: 13 G. Lusavorchi str.,
Yerevan, RA
Tel./Fax: (+37410) 540404
567486
TELEX: 243-286 LALA AM
E-mail: [email protected]
Website: ashib.am
SWIFT: ASHBAM22
Areximbank Gazprombank
Group
Acting Director: Vigen
Barseghyan
Address: 6-10 Northern ave.,
Yerevan, RA
Tel./Fax: (37410) 514040, 514060
TELEX: 243-111 RKARM AM
E-mail: [email protected]
Website: areximbank.am
SWIFT: RKASAM22
Armbusinessbank
Director: Arsen Mikaelyan
Address: 48 Nalbandyan str.
Yerevan, RA
Tel./Fax: (+37460) 372500,
(+37410) 592020, 592064
TELEX: 243134 IBANK.AM
E-mail:
Website: armbusinessbank.am
SWIFT: ARMNAM 22
Armeconombank
Director: Armen Naljyan
Address: 23/1 Amiryan str.,
Yerevan, RA
Tel./Fax: (+37410) 510910,
538904
TELEX: 243274MOZG AM
E-mail: [email protected]
Website: aeb.am
SWIFT: ARECAM22
Armenian Development Bank
Director: Karen Sargsyan
Address: 21/1 Paronyan str.,
Yerevan, RA
Tel./Fax: (+37410) 591515,
591405
TELEX:(684)243-116ADBAM
E-mail: [email protected]
Website: armdb.com
SWIFT: ARDEAM22
ArmSwissBank
Director: George Machanyan
Address: 10 Vazgen Sargsyan
str., Yerevan, RA
Tel./Fax: (+37410) 584419,
540728, 529593,
TELEX: -
E-mail: [email protected]
Website: аrmswissbank.am
SWIFT: ARSGAM22
Artsakh Bank
Director: Kamo Nersisyan
Address: 3 Kievyan str., Yerevan,
RA; 25 Knunyancneri,
Stepanakert, NKR
Tel./Fax: (+37410) 220743,
270763, 270734
TELEX: (684) 243 385 BANK AM
E-mail: [email protected]
Website: artsakhbank.com
SWIFT: ARTSAM22
BTA Bank
Acting Director: Hovhannes
Mkrtichyan
Address: 48/1 Nalbandyan str.,
Yerevan, RA
Tel./Fax: (+37410) 500777,
547645, 547649
TELEX: 243124 ECO AM
E-mail: [email protected]
Website: bta.am
SWIFT: BTAIAM22
© 2015 KPMG Armenia cjsc. All rights reserved. 37
Appendix 4
Bank Contact Details (continued)
ProCredit Bank
Director: Avtandil Gogoli
Address: 105/1 Teryan str., area
11, 7th floor, Citadel Business
Center, Yerevan, RA
Tel./Fax: (+37411) 202020
TELEX: -
E-mail: [email protected]
Website: procreditbank.am
SWIFT: PRCBAM22
Inecobank
Director: Taron Ganjalyan
Address: 17 Tumanyan str.,
Yerevan, RA
Tel./Fax: (+37410) 510510,
510573
TELEX: -
E-mail: [email protected]
Website: inecobank.am
SWIFT: INJSAM22
VTB Bank (Armenia)
Director: Yuri Gusyev
Address: 46 Nalbandyan str.,
Yerevan, RA
Tel./Fax: (+37480000) 8787,
(+37410) 565578
TELEX: -
E-mail: [email protected]
Website: vtb.am
SWIFT: ARMJAM22
Prometey Bank
Director: Emil Soghomonyan
Address: 44/2 Hanrapetutian str.,
Yerevan, RA
Tel./Fax: (+37410) 562036,
582977, 545719
TELEX: -
E-mail: [email protected]
Website: prometeybank.am
SWIFT: PRMLAM22
Unibank
Director: Vardan Atayan
Address: 12/53 Charents str.,
Yerevan, RA
Tel./Fax: (+37410) 592259;
595555, 555140
TELEX: 243313 UNI AM
E-mail: [email protected]
Website: unibank-armenia.com
SWIFT: UNIJAM22
Byblos Bank Armenia
Director: Ararat Ghukasyan
Address: 18/3 Amiryan str.,
Yerevan, RA
Tel./Fax: (+37410) 530362,
535296
TELEX: 24-33-60 (068)
E-mail: [email protected]
Website: byblosbankarmenia.am
SWIFT: BYBAAM22
Mellat Bank
Director: Touraj Mehrdad
Address: 6 Amiryan str.,
Yerevan, RA
Tel./Fax: (+37410) 581791,
581523, 540885
TELEX: 581523
E-mail: [email protected]
Website: mellatbank.am
SWIFT: BKMTAM22
Converse Bank
Director: Tigran Davtyan
Address: 26/1V. Sargisyan str.,
Yerevan, RA
Tel./Fax: (+37410) 511200,
511211, 51 12 12
TELEX: 243139 PBCON RU, 111
780 HOR RU
E-mail: [email protected]
Website: conversebank.am
SWIFT: COVBAM22
HSBC Bank Armenia
Director: Thies Clemenz
Address: 66 Teryan str., Yerevan,
RA
Tel./Fax: (+37410) 515000,
515001
TELEX: 515000
E-mail: [email protected]
Website: hsbc.am
SWIFT: MIDLAM22
© 2015 KPMG Armenia cjsc. All rights reserved. 38
KPMG Experience in the Armenian Banking Sector
Audit
Current clients
Ardshinbank CJSC
Armenian Development Bank OJSC
Inecobank CJSC
HSBC Bank Armenia CJSC
PanArmenian Bank OJSC
ProCredit Bank CJSC
Tax
Advisory
Client name Service description
Anelik Bank CJSC KPMG in Armenia provided IT Advisory services to the bank.
Inecobank CJSC KPMG in Armenia assisted the Bank in HR Advisory Services.
Undisclosed Bank
KPMG in Armenia performed Bank’s Top management
remuneration and bonus competitiveness survey
Converse Bank CJSC
KPMG in Armenia assisted Converse Bank cjsc in developing a
marketing plan for attracting corporate customers.
Armimpexbank CJSC
KPMG in Armenia assisted the Bank in the development and
implementation of “a one window” system.
Byblos Bank Armenia CJSC
KPMG in Armenia assisted the Bank in obtaining necessary
information about the commercial and retail lending market of
Armenia.
Ardshinbank CJSC
KPMG in Armenia assisted the Bank in the development and
implementation of “a one window” system.
International Undisclosed Bank
KPMG in Armenia assisted in the pre-investment due-diligence to
International Bank in its acquisition of an Armenian bank.
Current clients
VTB - Armenia Bank CJSC
© 2015 KPMG Armenia cjsc. All rights reserved. 39
Abbreviations
AMD Armenian Dram
BSTDB Black Sea Trade and Development Bank
CBA Central Bank of Armenia
CJSC Closed Joint Stock Company
DEG Deutsche Investitions und Entwicklungsgesellschaft
EBRD European Bank for Reconstruction and Development
GDP Gross Domestic Product
HHI Herfindahl-Hirschman Index
IFC International Finance Corporation
KfW Kreditanstalt für Wiederaufbau (Reconstruction Credit
Institute)
LLC Limited Liability Company
NfPO Non for Profit Organizations
NIM Net Interest Margin
NPE Net Provision Expenses
NPT Net Profit after Taxes
OCI Other Comprehensive Income
OeEB Development Bank of Austria
OFI Other Financial Institutions
OJSC Open Joint Stock Company
OPEC Organization of the Petroleum Exporting Countries
PM Profit Margin
RA Republic of Armenia
ROA Return on Assets
ROE Return on Equity
SME Small and Medium Entrepreneurship
© 2015 KPMG Armenia cjsc. All rights reserved. 40
Glossary of Terms
Herfindahl-Hirschman Index
Calculated by squaring the market share of each firm competing in the market and then summing
the resulting numbers. Index below 0.1 indicates an unconcentrated index; index between 0.1 and
0.18 indicates moderate concentration; index above 0.18 indicates high concentration.
Equity to assets
Calculated as the total equity divided by the total assets.
Liquidity
Prudential ratio N1
2(High liquid assets/Total assets) calculated and reported by each bank as of the
reporting date according to the corresponding regulation of the CBA.
Capital adequacy
Prudential ratio N1
(Total capital/ risk weighted assets) calculated and reported by each bank as of
the reporting date according to the corresponding regulation of the CBA.
Net interest margin
Calculated as the net interest income generated during the last 12 months ended by the reporting
date divided by the average interest earning assets for the mentioned 12 months.
Profit margin
Calculated as the net profit generated during the reported period divided by the total income for
the same period.
Return on Assets
Calculated as the net profit generated during the last 12 months ended by the reporting date
divided by the total average assets for the mentioned 12 months.
Return on Equity
Calculated as the net profit generated during the last 12 months ended by the reporting date
divided by the average total equity for the mentioned 12 months.
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual
or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is
accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without
appropriate professional advice after a thorough examination of the particular situation
© 2015 KPMG Armenia cjsc, a company incorporated under the Laws of the Republic of Armenia, a member firm of the KPMG
network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All
rights reserved.
The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.
Contact us
Tigran Gasparyan
Managing Partner
KPMG in Armenia
T + 374 10 56-67-62
Zaruhi Furunjyan
Head of Advisory
Manager
T + 374 10 56-67-62
www.kpmg.am